In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the demand of reserves, ________ the federal funds rate, everything else
held constant. A) decreases; lowering
B) increases; lowering
C) increases; raising
D) decreases; raising
A
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According to the Federal Reserve, household wealth in the United States fell by more than $11 trillion in 2008
Predict the effect this decrease in wealth had on the equilibrium real wage and level of employment, and use a graph to support your answer.
The more block prices a monopoly can set instead of setting a single price,
A) the smaller the deadweight loss. B) the more producer surplus. C) the larger the total welfare. D) All of the above.
A new Mexican restaurant opens in the city of Manchester. The other restaurant owners are not happy about this new restaurant because they are experiencing what externality?
Capital gains tax liabilities usually
A. must be recognized and paid by the estate of the decedent upon death. B. are recognized only upon the sale of a capital asset. C. are recognized before the sale of a capital asset as the gain actually accrues. D. do not include any taxation of actual inflation.